- Well-Maintained LIHTC Assets in a Thriving Omaha MSA
- Consistently Strong Historical Occupancy and Performance
- Value-Add Opportunity Through Loss-to-Lease Recapture and Expense Optimization
- Rare Section 42 LIHTC Offering with Reliable, Subsidized Income
- Attractive Basis Relative to Comparable Omaha Assets
Well-Maintained LIHTC Assets in a Thriving Omaha MSA
The U.S. active adult (55+) community market size was valued at $565.3 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 4.01% from 2022 to 2030. Increasing demand from baby boomers, reduction in the stigma of retiring, and growing interest of investors in senior living facilities are driving the market. Current ownership has invested in the asset, installing new roofs, siding, and gutters over the past twelve months. Additionally, many 55+ workers elected to retire early due to Covid-19, which has led to increased demand in the short-term as well.
Consistently Strong Historical Occupancy and Performance
Both properties have demonstrated dependable performance, consistently achieving high occupancy rates and reliable rent collections. This stability is supported by the affordable nature of the units and the structural benefits of the Low-Income Housing Tax Credit (LIHTC) program, which continues to serve as a key driver of demand in the submarket.
Value-Add Opportunity Through Loss-to-Lease Recapture and Expense Optimization
There is a clear path to NOI growth by recapturing loss-to-lease through incremental rent increases aligned with allowable LIHTC rent limits. Additionally, opportunities exist to improve operational efficiency by reducing controllable expenses, positioning investors to unlock more than $100,000 in additional annual net operating income with minimal capital investment.
